Rate and liquidity fears drive investor flight from bonds

A rush to exit high-yield bonds is accelerating, driven by investor fears that the predicted rise in interest rates could trigger a mass sell-off

By

Matt Turner and

Sarah Krouse

August 11, 2014 Updated: 8:44 p.m. GMT

A rush to exit high-yield bonds is accelerating, driven by investor fears that the predicted rise in interest rates could trigger a mass sell-off too big for the market to absorb.

Managers including Vontobel, Schroders and Aberdeen Asset Management have been trimming their high-yield exposure in funds, amid concerns over investors' ability to exit the asset class in a period of market stress.